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H&R Block (HRB) to Report Q1 Earnings: What's in the Cards?

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H&R Block, Inc. (HRB - Free Report) is scheduled to report its first-quarter fiscal 2023 results on Nov 1, after the bell.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the past four quarters, with a surprise of 19.2% on average.

Q1 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $200 million, indicating a sequential decrease of 81%. The consensus mark for the bottom line is pegged at a loss of $1.04 per share against earnings of $1.43 per share registered in the prior quarter.

The expected sequential decline is mainly due to the seasonality of HRB’s business. As most of the company’s clients file their tax returns in the months of February, March and April, a significant majority of revenues from income tax return preparation and related services and products are generated in these three months. The company generally operates at a loss in the first two quarters of a fiscal year.

Overall, HRB is expected to continue its progress with Block Horizons — a five-year strategy focusing on using human expertise and technological infrastructure to drive innovation — in the quarter.

The strategy aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and make taxation faster and more personalized by integrating human expertise with digital tools.

What Our Model Says

Our proven model predicts an earnings beat for H&R Block this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

H&R Block has an Earnings ESP of +2.42% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

H&R Block, Inc. Price and EPS Surprise

 

Other Stocks That Warrant a Look

Here are some other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these, too, have the right combination of elements to beat on earnings this season:

Trane Technologies plc (TT - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank #3.

Trane Technologies has an expected earnings growth rate of 16.3% for the current year. TT has a trailing four-quarter earnings surprise of 3.9% on average.

Riot Blockchain (RIOT - Free Report)  has an Earnings ESP of +129.17% and a Zacks Rank #3.

Riot has an expected revenue growth rate of 41.2% for the current year and 69.1% for the next year.  

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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